LONDON--Defense, security and aerospace firm QinetiQ Group PLC (QQ.LN) said Thursday its OptaSense(R) distributed acoustic sensing, or DAS, business has signed follow-on contracts with Shell which set a clear roadmap for the provision of services over the next three years.

MAIN FACTS:

-The new contracts include:

* Customer-funded product development, worth 10 million pounds, which will focus on new tools for flow monitoring, as well as enhancements to proven tools for hydraulic fracture monitoring and vertical seismic profiling, or VSP;

* Addition of VSP to the global commercial framework agreement, which gives any Shell business worldwide access to OptaSense services under a standard set of terms and conditions; and

* Access for other companies across the oil and gas industry to OptaSense services that were previously exclusive to Shell.

-QineiQ shares closed Wednesday at 196 pence valuing the company at GBP1.29 billion; Shell B shares closed at 2224 pence valuing the company at GBP57.91 billion.

-Write to Ian Walker at ian.walker@dowjones.com

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